Bitcoin News Today: Bitcoin's $114K Crossroads: Will It Signal a Breakdown?

Bitcoin’s price action has fixated on the $114,000 level as traders closely monitor whether the asset can convincingly break below it, with analysts suggesting this could signal further downside. The level has functioned as short-term resistance, and despite macroeconomic events like the U.S.-EU trade deal, Bitcoin’s price behavior has shown little sign of directional change. The trade agreement, finalized by the U.S. and EU, reduced tariffs on various goods and addressed long-standing regulatory concerns, but it failed to significantly move the needle for Bitcoin or broader stock indices such as the S&P 500 and Nasdaq.

According to on-chain data from CoinGlass, bid liquidity aligned with the $112,900 level, offering a potential support zone in the event of a breakdown. Popular crypto analyst Rekt Capital noted that Bitcoin’s rejection from the $114,000 level on the daily timeframe could imply a continuation of bearish momentum. Fellow trader Daan Crypto Trades identified a potential local low between $109,850 and $111,900, with further weakness below that range likely to be seen as a structural breakdown in the BTC/USDT perpetual contract.

Meanwhile, the broader macroeconomic outlook remains in flux, particularly with the Federal Reserve’s upcoming Jackson Hole symposium. Investors are recalibrating expectations for a September rate cut as inflation concerns resurface. The latest producer price index (PPI) data indicated that inflationary pressures are persisting, prompting Bank of America and others to suggest that the Fed might maintain rates for longer. According to Kalshi data, the probability of no rate cut in September has risen to 36%, up from earlier in the month. The CME Group’s FedWatch tool still assigns a 25% likelihood of no rate movement, but the overall probability of a 25-basis-point cut is now priced at 85%, down from as high as 98% last week.

The evolving interest-rate environment has also impacted cryptocurrency markets. Bitcoin has pulled back from its late July high above $124,000 to a current level near $113,700, marking a roughly 9% decline. Ethereum and other major altcoins have also seen significant drawdowns, with ETH falling below $4,200. Traditional markets have mirrored this risk-off sentiment, with the S&P 500 and Nasdaq down 0.4% and 0.9%, respectively. Investors are waiting for clarity from Fed Chair Jerome Powell, who is expected to address the economic outlook and potential policy shifts during his Jackson Hole speech.

In addition to the central bank’s actions, the U.S.-EU trade deal has introduced new variables into the mix. The agreement aims to reduce trade tensions, with the U.S. agreeing to lower tariffs on EU goods, contingent on reciprocal measures from the EU. However, the deal has yet to translate into meaningful bullish momentum for Bitcoin or other cryptocurrencies, which have instead continued to trade within a defined range. Analysts remain divided on whether the deal will serve as a catalyst for a broader market rebound or if the focus will remain on the Fed’s policy decisions.

Source: [1] Bitcoin Ignores US-EU Trade Deal With $114K In Focus (https://cointelegraph.com/news/bitcoin-price-dip-hinges-on-114k-as-markets-shrug-off-us-eu-trade-deal) [2] Bitcoin Drops Below $114K, Ether Loses $4.2K as Jackson ... (https://www.coindesk.com/markets/2025/08/19/bitcoin-drops-below-usd114k-ether-loses-usd4-2k-as-jackson-hole-speech-might-bring-hawkish-surprise) [3] Markets still price in September cut, but Powell in Jackson ... (https://fortune.com/2025/08/18/powell-jackson-hole-cut-preview-chances-lowering-inflation/) [4] The Fed at Jackson Hole: Powell treads fine line on rate cut ... (https://www.usatoday.com/story/money/2025/08/21/powell-fed-jackson-hole-rates/85718105007/) [5] EU agrees on terms, signs trade deal with the US (https://www.mitrade.com/au/insights/news/live-news/article-3-1059007-20250821) [6] Trump's EU Trade Deal Sparks Crypto Surge: BTC Nears ... (https://cryptorank.io/news/feed/d1616-trumps-eu-trade-deal-sparks-crypto-surge-btc-nears-120k-bnb-breaks-ath)